The Swedish Krona is advancing versus the Pound in early trade on Tuesday after slipping lower on Monday. The Swedish Krona settled in the previous session -0.3% lower at 12.4522, after trading a range of 12.4101 – 12.4860.

At 06:15 UTC, GBP/SEK is trading -0.1% at 12.4364 as investors look ahead to the release of Swedish retail sales and ahead of the Riksbank monetary policy announcement.

No Cut Expected

The Swedish central bank is not expected to cut interest rates to support the Swedish economy through the coronavirus crisis, despite Sweden facings its deepest recession since World War 2, unemployment soaring and inflation sinking.

The Riksbank is seen leaving the rate unchanged at 0% after having raised the benchmark rate back in December. Some analysts expect the Riksbank to announce other measure to cushion the economy such as boosting its quantitative easing programme.

Sweden has not adopted the hard lock down approach to covid-19 that other European countries have implemented. However, some companies have closed their factories and consumers reined in their spending cutting back on restaurant visit and travel.

The economy is expected to shrink by -7% this year, topping the -4.2% contraction during the financial crisis. Inflation Is also expected to drop to 0, far from the central bank’s 2% target. However, the Riksbank have only just brought the rate out of negative territory after 5 years so are reluctant to return to that position.

In addition to the Riksbank announcement, Swedish retail sales are also due to be released. Investors are expecting a -2.8% decline in retail sales month on month in March. This is significantly down from February’s 0.2% increase, as the data reflects the social distancing measures that Swedish people are adhering to.

Boris Johnson’s Exit Plan Awaited

The Pound is trading on the back foot after Prime Minister Boris Johnson returns to Downing Street to lead the government after recovering from coronavirus but fails to ease lock down restrictions. With the daily death toll down at 360, the lowest level since March 30 and with the UK economy showing signs of huge strain, pressure is on the Prime Minister to produce and exit plan. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.